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| 06.12.25 22:45:00 |
What Is One of the Best Tech Stocks to Hold for the Next 10 Years? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
The AI chip leader maintains a strong competitive position in providing the essential components to build next-generation data centers. Nvidia offers an attractive valuation relative to its growth prospects.10 stocks we like better than Nvidia ›
Nvidia(NASDAQ: NVDA) has been one of the top-performing tech stocks in recent years. The shares have increased by 22,000% over the last 10 years, 1,230% in the previous five years, and 30% in the last 12 months, outpacing the Nasdaq Composite's 20% one-year return.
While there is increasing competition in the market for artificial intelligence (AI) chips, Nvidia continues to demonstrate leadership in delivering market-beating returns for investors in this bull market.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Why Nvidia remains a compelling investment
There has been considerable media attention on advances in custom AI chips, such as Google's Tensor Processing Units (TPUs), and how these might negatively impact Nvidia's sales. However, one reason Nvidia is likely to continue dominating the market for data center chips is that it provides much more than just a chip.
Nvidia offers a full technology stack of chips, software, and networking components to build AI data centers. Nvidia's GB300 Blackwell graphics processing units (GPUs) remain the most in-demand AI chip as we enter 2026. Management stated on its recent quarterlyearnings callthat compute capacity in cloud data centers using Nvidia chips is fully utilized, while demand for more chips remains above expectations.
With the stock continuing to trade at a reasonable forward (one-year) price-to-earnings ratio of 24, Nvidia remains one of the best growth stocks to buy right now. Analysts expect its earnings per share to compound at an annual rate of 37% over the next several years.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 22:06:49 |
Does Jamf’s Sluggish Share Price Hide Long Term Value Potential in 2025? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Wondering if Jamf Holding at around $12.97 is quietly setting up a value opportunity, or if the market is signaling you should stay cautious? This breakdown is designed to help you decide with confidence. While the stock is roughly flat over the last week (up 0.3%) and month (up 0.8%), it is still down 7.9% year to date and 15.9% over the past year, with a much steeper slide of 40.1% over three years and 59.8% over five years that has many investors asking whether expectations have finally reset. Recent headlines around Jamf have focused on how it is positioning itself as a go to platform for managing Apple devices at scale in enterprises and education, alongside ongoing efforts to sharpen its product offering and customer reach. That mix of strategic investment and market skepticism is a big part of why today’s share price looks so different to where it traded a few years ago. On our framework, Jamf Holding scores a 5 out of 6 valuation score, suggesting the market may be underestimating it across most of our checks. Next, we will unpack what that actually means through multiple valuation lenses, before finishing with a more holistic way to think about value beyond the usual models.
Find out why Jamf Holding's -15.9% return over the last year is lagging behind its peers.
Approach 1: Jamf Holding Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a business is worth today by projecting the cash it could generate in the future and then discounting those cash flows back to their value in today’s dollars.
For Jamf Holding, the model starts with last twelve month Free Cash Flow of about $110.1 million and projects how that could grow over time, using analyst estimates for the next few years and then extrapolating further out. On this basis, Jamf’s annual Free Cash Flow is expected to rise to roughly $275.4 million by 2035, which reflects a steady ramp up in cash generation as the business scales.
Using a 2 Stage Free Cash Flow to Equity approach, those projected cash flows translate into an estimated intrinsic value of about $22.81 per share. Compared with the current share price of roughly $12.97, the DCF suggests the stock is trading at a 43.1% discount, indicating potential upside if the cash flow projections are realized.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Jamf Holding is undervalued by 43.1%. Track this in your watchlist or portfolio, or discover 907 more undervalued stocks based on cash flows.JAMF Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Jamf Holding.
Story Continues
Approach 2: Jamf Holding Price vs Sales
For a business like Jamf that is still building toward stronger profitability, the price to sales ratio is a useful way to judge value because it focuses on how the market is pricing each dollar of revenue rather than current earnings, which can be suppressed by investment and accounting factors.
In general, higher growth and lower perceived risk justify a higher price to sales multiple, while slower growth or greater uncertainty point to a lower, more conservative range. Jamf currently trades on a price to sales multiple of about 2.50x, which is below both the broader Software industry average of roughly 4.87x and a peer group average of about 3.00x, signaling a discount on simple comparisons.
Simply Wall St’s Fair Ratio, at around 3.93x, estimates what Jamf’s price to sales multiple should be once you factor in its growth outlook, margins, risk profile, industry positioning and market cap. This Fair Ratio is more tailored than blunt peer or industry comparisons because it adjusts for company specific strengths and weaknesses. With the current 2.50x sitting well below the 3.93x Fair Ratio, the shares appear undervalued on this metric.
Result: UNDERVALUEDNasdaqGS:JAMF PS Ratio as at Dec 2025
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1446 companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Jamf Holding Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply clear, written explanations of your view on a company that connect its story to your assumptions for future revenue, earnings and margins, and then to a fair value estimate. On Simply Wall St’s Community page, used by millions of investors, Narratives make this process easy by letting you spell out why you think Jamf will win or struggle, translate that view into a financial forecast, and instantly see what you believe the shares are worth compared to today’s price so you can decide whether to buy, hold or sell. These Narratives update dynamically when new information like earnings or news arrives, keeping your fair value aligned with Jamf’s evolving reality. They also make it clear how different perspectives can coexist. For example, some investors may build a Narrative around a more optimistic fair value near $23.00 based on strong Apple ecosystem and AI tailwinds, while others may focus on competitive and strategic risks and land closer to $10.00, showing the full range of outcomes you can weigh for yourself.
Do you think there's more to the story for Jamf Holding? Head over to our Community to see what others are saying!NasdaqGS:JAMF Community Fair Values as at Dec 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include JAMF.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments |
| 06.12.25 22:05:00 |
What Is One of the Best Tech Stocks to Hold for the Next 10 Years? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
The AI chip leader maintains a strong competitive position in providing the essential components to build next-generation data centers. Nvidia offers an attractive valuation relative to its growth prospects. 10 stocks we like better than Nvidia ›
Nvidia(NASDAQ: NVDA) has been one of the top-performing tech stocks in recent years. The shares have increased by 22,000% over the last 10 years, 1,230% in the previous five years, and 30% in the last 12 months, outpacing the Nasdaq Composite's 20% one-year return.
While there is increasing competition in the market for artificial intelligence (AI) chips, Nvidia continues to demonstrate leadership in delivering market-beating returns for investors in this bull market.Image source: Getty Images.
Why Nvidia remains a compelling investment
There has been considerable media attention on advances in custom AI chips, such as Google's Tensor Processing Units (TPUs), and how these might negatively impact Nvidia's sales. However, one reason Nvidia is likely to continue dominating the market for data center chips is that it provides much more than just a chip.
Nvidia offers a full technology stack of chips, software, and networking components to build AI data centers. Nvidia's GB300 Blackwell graphics processing units (GPUs) remain the most in-demand AI chip as we enter 2026. Management stated on its recent quarterly earnings call that compute capacity in cloud data centers using Nvidia chips is fully utilized, while demand for more chips remains above expectations.
With the stock continuing to trade at a reasonable forward (one-year) price-to-earnings ratio of 24, Nvidia remains one of the best growth stocks to buy right now. Analysts expect its earnings per share to compound at an annual rate of 37% over the next several years.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Story Continues
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
What Is One of the Best Tech Stocks to Hold for the Next 10 Years? was originally published by The Motley Fool
View Comments |
| 06.12.25 21:45:00 |
The Secret to Finding the Next Broadcom Is Hiding in Plain Sight |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
Broadcom has delivered huge returns over the past five years. The company's AI chips have played a key role in its success. Investors can find the next Broadcom by considering the key factors that led to its surge.10 stocks we like better than Broadcom ›
Broadcom(NASDAQ: AVGO) has been one of the best stocks to hold over the past decade. It has rallied by almost 4,000% during that stretch, including a return of 10x over the past five years.
Investors can't expect those types of returns from Broadcom over the next decade. The artificial intelligence (AI) chipmaker's market cap would exceed the annual U.S. GDP if the stock soared by almost 4,000%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
That's why investors look for the next Broadcom. They want to be on the ground floor before a stock rallies by 4,000% over the past decade.
Some investors refer to these types of gains as "generational returns," but such opportunities occur far more frequently than once in a generation. The jaw-dropping rallies for Tesla and Palantir Technologies are only separated by a few years.
Broadcom shares several key factors in common with other high-growth stocks that have delivered what many investors would consider generational returns. Knowing what made Broadcom into the company it is today can help you identify the next long-term winner.
Image source: Getty Images.
Broadcom solves an important problem
The biggest companies solve incredible problems, and Broadcom is no exception. The company has been producing semiconductor chips long before the advent of AI, and Broadcom chips were once found in every iPhone. Its tech forms the foundation that allows other companies to solve big problems.
Broadcom chips are in many computers, wireless routers, video game consoles, and other devices. Those products have significant consumer demand, but they also require chips to operate. Broadcom isn't the only chipmaker, but it is a leader in the industry. Computers and other critical products cannot function without chips.
AI has increased the demand for advanced chips, and it's been a boon for Broadcom. The technology can revolutionize the world far more than the internet in its best-case scenario.
Tesla CEO Elon Musk recently shared on X that AI can solve hunger, disease, and poverty. Sundar Pichai, the CEO of Google and its parent company, Alphabet, also said that AI is "more important than fire or electricity."
If AI is that important, then chipmakers like Broadcom are that important, by extension. Broadcom powers the technology that business leaders have said can solve hunger and is more important than electricity. Very few companies are solving that type of problem, and that's why Broadcom is one of the largest corporations on the planet.
Considering which companies are solving problems that can become consequential may lead to the next Broadcom.
The chipmaker serves large customers
There are two ways to grow a business. You can either focus on serving a few high-paying customers or offer products or services to a large customer base. While Walmart does a good job of attracting millions of people to its stores each day, Broadcom doesn't have as many customers.
The company also works with smaller enterprises, but most of its revenue comes from large corporations, especially tech giants that want chips. Broadcom has a deep partnership with Google that includes designing custom AI chips, and that got Meta Platforms' attention. Facebook's parent company is discussing a multibillion-dollar deal for Google's chips, which bodes well for Broadcom.
When Broadcom signs a new customer, it can result in a multibillion-dollar deal, and such transactions can significantly boost the stock price. Investors saw that play out recently, with Broadcom soaring by more than 10% on news that Meta Platforms was in talks to buy Google's AI chips.
Examining how the largest companies allocate their resources can reveal promising growth stocks, especially when they are just starting to gain momentum.
The company has used acquisitions to fill in gaps
Broadcom has made several acquisitions over the years that prepared it for the AI boom. Ironically, one of the biggest acquisitions was when Avago acquired Broadcom for $37 billion and rebranded as Broadcom. That's why Broadcom trades under the ticker AVGO instead of a symbol that more closely resembles Broadcom's spelling.
That decision made Broadcom more competitive against other chipmakers and significantly helped in attracting large customers. The firm also acquired semiconductor firm LSI Corporation for $6.6 billion in 2013. More recently, Broadcom acquired VMware to expand its software business.
Other tech giants have acquired their way to more market share. Google bought YouTube to get an early start in video content, Amazon bought Whole Foods to boost its grocery store footprint, and Meta Platforms bought Instagram to capitalize on a high-engagement social network.
Each of those companies has made additional acquisitions and investments. It's part of becoming a corporate giant like Broadcom.
This AI stock checks the boxes to become the next Broadcom
Broadcom has long-term customers and offers essential technology, and Iren(NASDAQ: IREN) also checks those boxes. Instead of creating AI chips, Iren creates AI data centers at scale and just signed a five-year, $9.7 billion deal with Microsoft. It also supplies energy, which is currently the major bottleneck in AI development.
Iren already has multiple gigawatts and AI data centers to support additional deals, and co-CEO Dan Roberts recently told CNBC that the company "can't meet demand fast enough." That's a good bullish indicator, especially since most AI demand is coming from tech giants with lots of money to spend.
Iren's data centers are optimized for the rigorous energy demands of AI tools and software. Regular data centers aren't good enough for this new tech boom because they can't handle AI workloads. Iren is still a small company with a market cap below $15 billion, but it's solving the same exact problems as Broadcom.
As Iren grows, expect the AI data center provider to acquire smaller companies to increase its market share. That will further put it on the path to becoming the next Broadcom.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Marc Guberti has positions in Broadcom and Iren. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Palantir Technologies, Tesla, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 21:10:52 |
SA Asks: What's the most attractive cybersecurity stock right now? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | [Zscaler, CrowdStrike, Palo Alto Networks, CyberArk. Assorted American cybersecurity company]
Robert Way
What's the most attractive cybersecurity stock right now for investors?
Seeking Alpha analysts Dair Sansyzbayev [https://seekingalpha.com/author/dair-sansyzbayev] and Michael Del Monte [https://seekingalpha.com/author/michael-del-monte] weigh in.
Dair Sansyzbayev [https://seekingalpha.com/author/dair-sansyzbayev]: I believe that CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]) is the most attractive investment opportunity among cybersecurity companies because they are doing a lot in terms of expanding their footprint in AI cybersecurity. This market is likely to grow rapidly as generative AI and AI agents create new challenges in terms of cybersecurity that were never seen before. I like CrowdStrike's (CRWD [https://seekingalpha.com/symbol/CRWD]) balance of maintaining stellar profitability while investing in innovation and developing AI-related features as well. The company's customer base is growing, and revenue per customer growth indicates robust cross-selling potential. Therefore, I believe that CRWD's premium valuation is justified, as we are likely to see dramatic P/E contraction over the long term.
Michael Del Monte [https://seekingalpha.com/author/michael-del-monte]: Cybersecurity may largely be directed by the industry trends in identity management; I believe Palo Alto Networks (PANW [https://seekingalpha.com/symbol/PANW]) and Zscaler (ZS [https://seekingalpha.com/symbol/ZS]) present appealing opportunities for growth over the coming years, particularly as enterprises lean more heavily into utilizing agentic AI. CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]) remains a top pick for its single-platform solution despite the high valuation. CrowdStrike's (CRWD [https://seekingalpha.com/symbol/CRWD]) initiative is to simplify security operations through automation, an appealing strategy during a period of economic growth concerns.
* Top Systems Software Stocks [https://seekingalpha.com/screeners/9409aed042-Top-Systems-Software-Stocks]
MORE ON CROWDSTRIKE, ZSCALER, ETC.
* CrowdStrike's AI Reality Check [https://seekingalpha.com/article/4850793-crowdstrike-ai-reality-check]
* CrowdStrike Holdings, Inc. (CRWD) Presents at UBS Global Technology and AI Conference 2025 Transcript [https://seekingalpha.com/article/4849818-crowdstrike-holdings-inc-crwd-presents-at-ubs-global-technology-and-ai-conference-2025]
* CrowdStrike: Cybersecurity Leader With Defensive Strength, But Has Valuation Issues [https://seekingalpha.com/article/4849804-crowdstrike-cybersecurity-leader-with-defensive-strength-but-has-valuation-issues]
* Notable analyst calls this week: Novartis, Albemarle and Zscaler among top picks [https://seekingalpha.com/news/4529036-notable-analyst-calls-this-week-novartis-albemarle-and-zscaler-among-top-picks]
* CrowdStrike's results, guidance seen as 'major validation moment,' analysts say [https://seekingalpha.com/news/4528033-crowdstrikes-results-guidance-seen-as-major-validation-moment-analysts-say]
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| 06.12.25 21:05:00 |
The Secret to Finding the Next Broadcom Is Hiding in Plain Sight |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
Broadcom has delivered huge returns over the past five years. The company's AI chips have played a key role in its success. Investors can find the next Broadcom by considering the key factors that led to its surge. 10 stocks we like better than Broadcom ›
Broadcom(NASDAQ: AVGO) has been one of the best stocks to hold over the past decade. It has rallied by almost 4,000% during that stretch, including a return of 10x over the past five years.
Investors can't expect those types of returns from Broadcom over the next decade. The artificial intelligence (AI) chipmaker's market cap would exceed the annual U.S. GDP if the stock soared by almost 4,000%.
That's why investors look for the next Broadcom. They want to be on the ground floor before a stock rallies by 4,000% over the past decade.
Some investors refer to these types of gains as "generational returns," but such opportunities occur far more frequently than once in a generation. The jaw-dropping rallies for Tesla and Palantir Technologies are only separated by a few years.
Broadcom shares several key factors in common with other high-growth stocks that have delivered what many investors would consider generational returns. Knowing what made Broadcom into the company it is today can help you identify the next long-term winner.Image source: Getty Images.
Broadcom solves an important problem
The biggest companies solve incredible problems, and Broadcom is no exception. The company has been producing semiconductor chips long before the advent of AI, and Broadcom chips were once found in every iPhone. Its tech forms the foundation that allows other companies to solve big problems.
Broadcom chips are in many computers, wireless routers, video game consoles, and other devices. Those products have significant consumer demand, but they also require chips to operate. Broadcom isn't the only chipmaker, but it is a leader in the industry. Computers and other critical products cannot function without chips.
AI has increased the demand for advanced chips, and it's been a boon for Broadcom. The technology can revolutionize the world far more than the internet in its best-case scenario.
Tesla CEO Elon Musk recently shared on X that AI can solve hunger, disease, and poverty. Sundar Pichai, the CEO of Google and its parent company, Alphabet, also said that AI is "more important than fire or electricity."
If AI is that important, then chipmakers like Broadcom are that important, by extension. Broadcom powers the technology that business leaders have said can solve hunger and is more important than electricity. Very few companies are solving that type of problem, and that's why Broadcom is one of the largest corporations on the planet.
Story Continues
Considering which companies are solving problems that can become consequential may lead to the next Broadcom.
The chipmaker serves large customers
There are two ways to grow a business. You can either focus on serving a few high-paying customers or offer products or services to a large customer base. While Walmart does a good job of attracting millions of people to its stores each day, Broadcom doesn't have as many customers.
The company also works with smaller enterprises, but most of its revenue comes from large corporations, especially tech giants that want chips. Broadcom has a deep partnership with Google that includes designing custom AI chips, and that got Meta Platforms' attention. Facebook's parent company is discussing a multibillion-dollar deal for Google's chips, which bodes well for Broadcom.
When Broadcom signs a new customer, it can result in a multibillion-dollar deal, and such transactions can significantly boost the stock price. Investors saw that play out recently, with Broadcom soaring by more than 10% on news that Meta Platforms was in talks to buy Google's AI chips.
Examining how the largest companies allocate their resources can reveal promising growth stocks, especially when they are just starting to gain momentum.
The company has used acquisitions to fill in gaps
Broadcom has made several acquisitions over the years that prepared it for the AI boom. Ironically, one of the biggest acquisitions was when Avago acquired Broadcom for $37 billion and rebranded as Broadcom. That's why Broadcom trades under the ticker AVGO instead of a symbol that more closely resembles Broadcom's spelling.
That decision made Broadcom more competitive against other chipmakers and significantly helped in attracting large customers. The firm also acquired semiconductor firm LSI Corporation for $6.6 billion in 2013. More recently, Broadcom acquired VMware to expand its software business.
Other tech giants have acquired their way to more market share. Google bought YouTube to get an early start in video content, Amazon bought Whole Foods to boost its grocery store footprint, and Meta Platforms bought Instagram to capitalize on a high-engagement social network.
Each of those companies has made additional acquisitions and investments. It's part of becoming a corporate giant like Broadcom.
This AI stock checks the boxes to become the next Broadcom
Broadcom has long-term customers and offers essential technology, and Iren (NASDAQ: IREN) also checks those boxes. Instead of creating AI chips, Iren creates AI data centers at scale and just signed a five-year, $9.7 billion deal with Microsoft. It also supplies energy, which is currently the major bottleneck in AI development.
Iren already has multiple gigawatts and AI data centers to support additional deals, and co-CEO Dan Roberts recently told CNBC that the company "can't meet demand fast enough." That's a good bullish indicator, especially since most AI demand is coming from tech giants with lots of money to spend.
Iren's data centers are optimized for the rigorous energy demands of AI tools and software. Regular data centers aren't good enough for this new tech boom because they can't handle AI workloads. Iren is still a small company with a market cap below $15 billion, but it's solving the same exact problems as Broadcom.
As Iren grows, expect the AI data center provider to acquire smaller companies to increase its market share. That will further put it on the path to becoming the next Broadcom.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Marc Guberti has positions in Broadcom and Iren. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Palantir Technologies, Tesla, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The Secret to Finding the Next Broadcom Is Hiding in Plain Sight was originally published by The Motley Fool
View Comments |
| 06.12.25 20:30:42 |
SA Quant ranks IVES AI 30 list after its latest shakeup |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | [Machine Learning. AI Neural Network Concepts]
Wedbush's Dan Ives, one of Wall Street's most bullish tech analysts, earlier this week updated his list of 30 companies that he sees as being the most instrumental to the artificial intelligence revolution.
CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]), Iren (IREN [https://seekingalpha.com/symbol/IREN]), and Shopify (SHOP [https://seekingalpha.com/symbol/SHOP]) were added [https://seekingalpha.com/news/4526804-coreweave-iren-added-salesforce-servicenow-removed-from-ives-ai-30-list-heading-into-2026-wedbush] to the IVES AI 30 list, while SoundHound (SOUN [https://seekingalpha.com/symbol/SOUN]), ServiceNow (NOW [https://seekingalpha.com/symbol/NOW]), and Salesforce (CRM [https://seekingalpha.com/symbol/CRM]) were removed.
Seeking Alpha took a look at the updated list and ranked its 30 constituents according to their Quant Ratings.
The list is topped by Micron Technology (MU [https://seekingalpha.com/symbol/MU]), Taiwan Semiconductor Manufacturing (TSM [https://seekingalpha.com/symbol/TSM]), and AMD (AMD [https://seekingalpha.com/symbol/AMD]), all with Strong Buy ratings of 4.99, 4.97, and 4.84, respectively. These three companies have shown impressive YTD performances, with MU leading at +181.9% growth. All other companies on the list maintain Hold ratings. Note that CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]) does not have a Quant rating.
Here is the full IVES AI 30 list ranked by Seeking Alpha's Quant Ratings:
* Micron Technology (MU [https://seekingalpha.com/symbol/MU]), Quant Rating: 4.99 - Strong Buy [https://seekingalpha.com/symbol/MU/ratings/quant-ratings].
* Taiwan Semiconductor Manufacturing (TSM [https://seekingalpha.com/symbol/TSM]), Quant Rating: 4.97 - Strong Buy [https://seekingalpha.com/symbol/TSM/ratings/quant-ratings].
* AMD (AMD [https://seekingalpha.com/symbol/AMD]), Quant Rating: 4.84 - Strong Buy [https://seekingalpha.com/symbol/AMD/ratings/quant-ratings].
* Alphabet (GOOGL [https://seekingalpha.com/symbol/GOOGL]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/GOOGL/ratings/quant-ratings].
* Iren (IREN [https://seekingalpha.com/symbol/IREN]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/IREN/ratings/quant-ratings].
* Nebius (NBIS [https://seekingalpha.com/symbol/NBIS]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/NBIS/ratings/quant-ratings].
* Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/NVDA/ratings/quant-ratings].
* Broadcom (AVGO [https://seekingalpha.com/symbol/AVGO]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/AVGO/ratings/quant-ratings].
* Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]), Quant Rating: 3.48 - Hold [https://seekingalpha.com/symbol/AMZN/ratings/quant-ratings].
* Palantir Technologies (PLTR [https://seekingalpha.com/symbol/PLTR]), Quant Rating: 3.48 - Hold [https://seekingalpha.com/symbol/PLTR/ratings/quant-ratings].
* Apple (AAPL [https://seekingalpha.com/symbol/AAPL]), Quant Rating: 3.48 - Hold [https://seekingalpha.com/symbol/AAPL/ratings/quant-ratings].
* Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]), Quant Rating: 3.46 - Hold [https://seekingalpha.com/symbol/MSFT/ratings/quant-ratings].
* IBM (IBM [https://seekingalpha.com/symbol/IBM]), Quant Rating: 3.43 - Hold [https://seekingalpha.com/symbol/IBM/ratings/quant-ratings].
* Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]), Quant Rating: 3.42 - Hold [https://seekingalpha.com/symbol/TSLA/ratings/quant-ratings].
* Oklo (OKLO [https://seekingalpha.com/symbol/OKLO]), Quant Rating: 3.41 - Hold [https://seekingalpha.com/symbol/OKLO/ratings/quant-ratings].
* MongoDB (MDB [https://seekingalpha.com/symbol/MDB]), Quant Rating: 3.41 - Hold [https://seekingalpha.com/symbol/MDB/ratings/quant-ratings].
* Oracle (ORCL [https://seekingalpha.com/symbol/ORCL]), Quant Rating: 3.41 - Hold [https://seekingalpha.com/symbol/ORCL/ratings/quant-ratings].
* Alibaba (BABA [https://seekingalpha.com/symbol/BABA]), Quant Rating: 3.35 - Hold [https://seekingalpha.com/symbol/BABA/ratings/quant-ratings].
* Palo Alto Networks (PANW [https://seekingalpha.com/symbol/PANW]), Quant Rating: 3.34 - Hold [https://seekingalpha.com/symbol/PANW/ratings/quant-ratings].
* Meta Platforms (META [https://seekingalpha.com/symbol/META]), Quant Rating: 3.32 - Hold [https://seekingalpha.com/symbol/META/ratings/quant-ratings].
* CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]), Quant Rating: 3.30 - Hold [https://seekingalpha.com/symbol/CRWD/ratings/quant-ratings].
* GE Vernova (GEV [https://seekingalpha.com/symbol/GEV]), Quant Rating: 3.30 - Hold [https://seekingalpha.com/symbol/GEV/ratings/quant-ratings].
* Pegasystems (PEGA [https://seekingalpha.com/symbol/PEGA]), Quant Rating: 3.28 - Hold [https://seekingalpha.com/symbol/PEGA/ratings/quant-ratings].
* Innodata (INOD [https://seekingalpha.com/symbol/INOD]), Quant Rating: 3.25 - Hold [https://seekingalpha.com/symbol/INOD/ratings/quant-ratings].
* Shopify (SHOP [https://seekingalpha.com/symbol/SHOP]), Quant Rating: 3.23 - Hold [https://seekingalpha.com/symbol/SHOP/ratings/quant-ratings].
* Baidu (BIDU [https://seekingalpha.com/symbol/BIDU]), Quant Rating: 3.23 - Hold [https://seekingalpha.com/symbol/BIDU/ratings/quant-ratings].
* Roblox (RBLX [https://seekingalpha.com/symbol/RBLX]), Quant Rating: 3.21 - Hold [https://seekingalpha.com/symbol/RBLX/ratings/quant-ratings].
* Zscaler (ZS [https://seekingalpha.com/symbol/ZS]), Quant Rating: 3.21 - Hold [https://seekingalpha.com/symbol/ZS/ratings/quant-ratings].
* Snowflake (SNOW [https://seekingalpha.com/symbol/SNOW]), Quant Rating: 3.11 - Hold [https://seekingalpha.com/symbol/SNOW/ratings/quant-ratings].
Here are some exchange-traded funds tied to the technology sector: (VGT [https://seekingalpha.com/symbol/VGT]), (XLK [https://seekingalpha.com/symbol/XLK]), (IYW [https://seekingalpha.com/symbol/IYW]), (FTEC [https://seekingalpha.com/symbol/FTEC]), (IXN [https://seekingalpha.com/symbol/IXN]), and (RSPT [https://seekingalpha.com/symbol/RSPT]).
MORE ON TECH
* Micron: Why An Exit From Consumer Isn't Scary [https://seekingalpha.com/article/4850267-micron-why-an-exit-from-consumer-isnt-scary]
* IGM Over IYW: Why Diversification Trumps Concentration In Today's Tech Rally [https://seekingalpha.com/article/4850194-igm-over-iyw-why-diversification-trumps-concentration-in-todays-tech-rally]
* 3 Well-Positioned AI Stocks From Steven Cress [https://seekingalpha.com/article/4849909-3-well-positioned-ai-stocks-from-steven-cress]
* Elon Musk says 'EU should be abolished' days after Europe slaps $140M fine on X [https://seekingalpha.com/news/4529114-elon-musk-says-eu-should-be-abolished-a-day-after-europe-slaps-140m-fine-on-x]
* SK Hynix chief says AI not in bubble, but stocks might face correction: report [https://seekingalpha.com/news/4528898-sk-hynix-chief-says-ai-not-in-bubble-but-stocks-might-face-correction-report]
|
| 06.12.25 20:24:04 |
Elon Musk Says He Warned Donald Trump To Drop Tariffs Over Fears of Job Losses: 'President Loves Tariffs, I've Tried To Dissuade Him' |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Elon Musk has said that he failed in his attempts to convince President Donald Trump to hold back on implementing tariffs.
What Happened: During an interview, Musk voiced his concerns about the potential market distortions caused by tariffs, which could lead to a recession and an increase in the prices of goods.
He discussed these issues in relation to Tesla‘s recent decision to stop orders for certain models in China, which was facing a retaliatory 125% tariff.
Simultaneously, US manufacturers are linking Trump’s tariffs to industry contraction and job cuts, which is contrary to Trump’s goal of bringing back American factory jobs. The tariffs seem to be having the opposite effect.
"The president has made it clear he loves tariffs. I've tried to dissuade him from this point of view, but unsuccessfully," Musk said during the interview.
Also Read: Elon Musk Tells Joe Rogan: ‘Trump Actually Is Not Perfect, but He’s Not Evil’
"Would you want tariffs between you and everyone else at an individual level? That would make life very difficult. Would you want tariffs between each city? No, that would be very annoying. Would you want tariffs between each state within the United States? No, that would be disastrous for the economy. So then, why do you want tariffs between countries?" he continued.
Recent job data from the U.S. Bureau of Labor Statistics supports these concerns, showing a decrease of 6,000 manufacturing jobs in October. This brings the total number of lost manufacturing jobs since Trump’s tariff push in April to 59,000.
Despite improving trade relations between the U.S. and China, some manufacturers predict that workforce reductions will continue as long as tariffs remain an issue.
Why It Matters: The concerns raised by Musk and American manufacturers highlight the potential negative impacts of tariffs on the economy. The tariffs, intended to protect domestic industries, appear to be causing industry contraction and job losses instead.
This situation underscores the complexity of international trade policies and their potential unintended consequences.
Read Next
Elon Musk’s Father Says America Will Collapse if White Population Becomes Minority: ‘You Want To See the US Go Down?’
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga:
APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report
Story Continues
This article Elon Musk Says He Warned Donald Trump To Drop Tariffs Over Fears of Job Losses: 'President Loves Tariffs, I've Tried To Dissuade Him' originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
View Comments |
| 06.12.25 19:27:12 |
Lowe’s (LOW) Holds Steady While Home Depot Stumbles, Stifel Says |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Lowe’s Companies, Inc. (NYSE:LOW) is included among the 15 Blue Chip Dividend Stocks to Build a Passive Income Porfolio.Lowe’s (LOW) Holds Steady While Home Depot Stumbles, Stifel Says
Photo by Annie Spratt on Unsplash
On December 1, Stifel raised its price target on Lowe’s Companies, Inc. (NYSE:LOW) from $230 to $250, while maintaining a Hold rating on the stock. The update came after the firm revised its estimates following the company’s earnings, guidance, recent filings, and FBM acquisition. Stifel highlighted that the quarter pointed to softer demand that did not meet expectations, but noted a ‘clear bifurcation in the two reports’ as Home Depot’s weakness was much harsher, whereas Lowe’s commentary and results showed resilience.
Lowe’s Companies, Inc. (NYSE:LOW) announced its earnings for the third quarter of 2025 on November 19, posting revenue of $20.8 billion, which showed a little over 3% growth from the same period last year. The company’s commitment to shareholders remained in place, as it returned $673 million to investors through dividends. Moreover, it also invested $8.8 billion for the acquisition of FBM. For FY25, the company expects sales of $86 billion, up from its previous guidance of between $84.5 billion and $85.5 billion.
Lowe’s Companies, Inc. (NYSE:LOW)’s dividend policy makes it an appealing option because not only has the company been consistent with paying dividends, but it has also raised its payouts for 60 consecutive years, which makes it a Dividend King. The payout ratio of just 38% signals dividend safety and also supports its five-year average annual dividend growth of 16%.
While we acknowledge the potential of LOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 15 High Quality Dividend Stocks for Long-Term Investors and 15 Dividend Stocks That Outperform the S&P 500
Disclosure: None.
View Comments |
| 06.12.25 19:10:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatilityThese 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size) MetricSSOTQQQIssuerProSharesProSharesExpense ratio0.87%0.82%1-yr return (as of 2025-11-28)18.8%36.5%Dividend yield2.5%2.7%Beta2.023.36AUM$7.3 billion$30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison MetricSSOTQQQMax drawdown (5 y)-46.77%-81.76%Growth of $1,000 over 5 years$2,735$2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 19:10:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
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|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatilityThese 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size) MetricSSOTQQQIssuerProSharesProSharesExpense ratio0.87%0.82%1-yr return (as of 2025-11-28)18.8%36.5%Dividend yield2.5%2.7%Beta2.023.36AUM$7.3 billion$30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison MetricSSOTQQQMax drawdown (5 y)-46.77%-81.76%Growth of $1,000 over 5 years$2,735$2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 18:30:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
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|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatility These 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size)
Metric SSO TQQQ Issuer ProShares ProShares Expense ratio 0.87% 0.82% 1-yr return (as of 2025-11-28) 18.8% 36.5% Dividend yield 2.5% 2.7% Beta 2.02 3.36 AUM $7.3 billion $30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison
Metric SSO TQQQ Max drawdown (5 y) -46.77% -81.76% Growth of $1,000 over 5 years $2,735 $2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
Story Continues
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $465,781!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $54,057!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $560,649!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you joinStock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? was originally published by The Motley Fool
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| 06.12.25 18:30:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatility These 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size)
Metric SSO TQQQ Issuer ProShares ProShares Expense ratio 0.87% 0.82% 1-yr return (as of 2025-11-28) 18.8% 36.5% Dividend yield 2.5% 2.7% Beta 2.02 3.36 AUM $7.3 billion $30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison
Metric SSO TQQQ Max drawdown (5 y) -46.77% -81.76% Growth of $1,000 over 5 years $2,735 $2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
Story Continues
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $465,781!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $54,057!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $560,649!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you joinStock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? was originally published by The Motley Fool
View Comments |
| 06.12.25 18:30:00 |
What Is 1 of the Best Artificial Intelligence Stocks to Buy Now? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
The artificial intelligence (AI) industry relies on advanced semiconductor chips sold by businesses such as Nvidia. One company is a global leader in the manufacturing of AI chips. In the wake of strong AI demand, this company, popularly known as TSMC, is expanding operations.10 stocks we like better than Taiwan Semiconductor Manufacturing ›
The hot field of artificial intelligence (AI) has boosted the fortunes of many businesses. Perhaps the most famous example is semiconductor chip leader Nvidia. It's a great AI company to invest in, but far from the only one.
Another compelling AI stock to consider is Taiwan Semiconductor Manufacturing (NYSE: TSM), commonly referred to as TSMC. Nvidia is one of its customers, as is major Nvidia competitor AMD.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Many reasons make TSMC a top AI stock to buy now. Here's a look at some of them to explain why it's a worthwhile investment.
Image source: Getty Images.
TSMC's AI-fueled success
TSMC plays a critical role in the AI industry. It manufactures the advanced semiconductor chips sold by Nvidia and AMD, and is the world's leading foundry in this area.
As a result, TSMC's sales are soaring. In the third quarter, the company reported revenue of 989.9 billion New Taiwan dollars ($33.1 billion), an impressive 30% year-over-year increase. This contributed to 39% year-over-year growth in diluted earnings per share (EPS) to 17.44 New Taiwan dollars ($2.92).
In fact, with the advent of AI, shareholders have been rewarded by TSMC's rising EPS over the past few years.
Data by YCharts.
Given its AI chip manufacturing leadership, TSMC is well-positioned to see continued growth. The customer demand is such that the company is building three new foundries in the U.S., as well as packaging and R&D facilities, totaling a $165 billion investment.
TSMC stock is a buy now because of its share price valuation. Its price-to-earnings (P/E) ratio is notably lower than both Nvidia and AMD.
Data by YCharts.
This indicates TSMC shares possess an attractive valuation compared to its prominent AI peers. It's also far more reasonable than rival Intel, which has a P/E multiple exceeding 4,000.
Combined with growing sales, EPS, and ongoing business expansion, TSMC looks like a great AI investment for the long term.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Robert Izquierdo has positions in Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 18:07:28 |
Is Verisk Still Attractive After a Tough 2024 and Mixed Long Term Returns? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Wondering if Verisk Analytics at around $221 a share still makes sense for long term investors, or if the best days are already priced in? This breakdown aims to cut through the noise and focus on what the business is really worth. The stock has slipped 1.7% over the last week, is up 3.4% over the past month, but is still down 19.1% year to date and 22.5% over the last year, even though it has delivered 23.5% and 17.7% total returns over the past 3 and 5 years respectively. Those mixed returns are arriving against a backdrop of steady demand for Verisk's data driven risk and analytics solutions across insurance and adjacent industries. Carriers are leaning on third party data to sharpen underwriting and capital allocation. At the same time, investor attention has shifted toward how efficiently Verisk is reallocating capital after recent portfolio simplification moves and how that could influence growth and margins over the next few years. Right now, Verisk scores just 2/6 on our valuation checks, suggesting the market may be asking a full price in most scenarios, but potentially leaving some upside in a couple of key areas. In the sections that follow, we will walk through the main valuation approaches investors typically use for Verisk, and finish with a more holistic way to think about what the stock is really worth beyond any single model.
Verisk Analytics scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Verisk Analytics Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model estimates what a company is worth by projecting the cash it can generate in the future, then discounting those cash flows back to today in $ terms. For Verisk Analytics, the 2 Stage Free Cash Flow to Equity model starts with last twelve month Free Cash Flow of about $1.09 billion and uses analyst forecasts for the next few years before extrapolating longer term trends.
Under this framework, Verisk’s Free Cash Flow is projected to rise to roughly $2.18 billion by 2035. This implies healthy but moderating growth as the business matures. When all those future cash flows are discounted back to today and summed, the model arrives at an estimated intrinsic value of about $268.76 per share.
Compared with a recent share price around $221, the DCF suggests the stock is trading at roughly a 17.7% discount to its calculated fair value. This indicates that the market may be underappreciating the durability of Verisk’s cash generation.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Verisk Analytics is undervalued by 17.7%. Track this in your watchlist or portfolio, or discover 906 more undervalued stocks based on cash flows.
Story Continues
VRSK Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Verisk Analytics.
Approach 2: Verisk Analytics Price vs Earnings
For a consistently profitable, asset light business like Verisk, the Price to Earnings (PE) ratio is a practical way to gauge what investors are willing to pay for each dollar of current earnings. Higher growth and lower perceived risk typically justify a higher, or “richer,” PE multiple, while slower growth or greater uncertainty usually warrant a lower one.
Verisk currently trades on a PE of about 33.7x, above the broader Professional Services industry average of roughly 25.0x, but a bit below the peer group average of around 35.2x. On the surface, that suggests investors already recognize Verisk’s quality and growth profile, but are not paying the very highest multiples seen in its space.
Simply Wall St’s Fair Ratio framework estimates that, after adjusting for Verisk’s earnings growth outlook, profit margins, market cap, risk profile, and industry, a more appropriate PE would be closer to 29.2x. Because this metric blends fundamentals and risk into a single benchmark, it is more informative than a simple comparison with peers or industry averages. With the actual PE sitting meaningfully above this Fair Ratio, Verisk looks somewhat expensive on an earnings basis.
Result: OVERVALUEDNasdaqGS:VRSK PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Verisk Analytics Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Verisk’s business with a financial forecast and a fair value estimate. On Simply Wall St’s Community page, millions of investors use Narratives to write the story behind their numbers, stating how they expect Verisk’s revenue, earnings and margins to evolve, and what they believe is a sensible fair value. Each Narrative links this story to a structured forecast, then compares its Fair Value to the latest share price to help decide whether Verisk looks like a buy, hold, or sell right now. Because Narratives update dynamically when new information, like earnings or M and A news, comes in, they remain a living reflection of investor expectations. For example, one Verisk Narrative might assume AI driven products and margin gains justify a fair value near the most bullish analyst target of about $340, while a more cautious Narrative, focused on slowing organic growth and execution risk, could anchor closer to the low end near $258. This gives you a clear framework for where your own view sits on that spectrum.
Do you think there's more to the story for Verisk Analytics? Head over to our Community to see what others are saying!NasdaqGS:VRSK Community Fair Values as at Dec 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include VRSK.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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| 06.12.25 17:50:00 |
What Is 1 of the Best Artificial Intelligence Stocks to Buy Now? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
The artificial intelligence (AI) industry relies on advanced semiconductor chips sold by businesses such as Nvidia. One company is a global leader in the manufacturing of AI chips. In the wake of strong AI demand, this company, popularly known as TSMC, is expanding operations. 10 stocks we like better than Taiwan Semiconductor Manufacturing ›
The hot field of artificial intelligence (AI) has boosted the fortunes of many businesses. Perhaps the most famous example is semiconductor chip leader Nvidia. It's a great AI company to invest in, but far from the only one.
Another compelling AI stock to consider is Taiwan Semiconductor Manufacturing (NYSE: TSM), commonly referred to as TSMC. Nvidia is one of its customers, as is major Nvidia competitor AMD.
Many reasons make TSMC a top AI stock to buy now. Here's a look at some of them to explain why it's a worthwhile investment.Image source: Getty Images.
TSMC's AI-fueled success
TSMC plays a critical role in the AI industry. It manufactures the advanced semiconductor chips sold by Nvidia and AMD, and is the world's leading foundry in this area.
As a result, TSMC's sales are soaring. In the third quarter, the company reported revenue of 989.9 billion New Taiwan dollars ($33.1 billion), an impressive 30% year-over-year increase. This contributed to 39% year-over-year growth in diluted earnings per share (EPS) to 17.44 New Taiwan dollars ($2.92).
In fact, with the advent of AI, shareholders have been rewarded by TSMC's rising EPS over the past few years.Data by YCharts.
Given its AI chip manufacturing leadership, TSMC is well-positioned to see continued growth. The customer demand is such that the company is building three new foundries in the U.S., as well as packaging and R&D facilities, totaling a $165 billion investment.
TSMC stock is a buy now because of its share price valuation. Its price-to-earnings (P/E) ratio is notably lower than both Nvidia and AMD.Data by YCharts.
This indicates TSMC shares possess an attractive valuation compared to its prominent AI peers. It's also far more reasonable than rival Intel, which has a P/E multiple exceeding 4,000.
Combined with growing sales, EPS, and ongoing business expansion, TSMC looks like a great AI investment for the long term.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Story Continues
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Robert Izquierdo has positions in Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
What Is 1 of the Best Artificial Intelligence Stocks to Buy Now? was originally published by The Motley Fool
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| 06.12.25 17:47:00 |
Closed beverage facility revived by rival after abrupt shutdown |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | As the cost of daily necessities continues to rise and federal policy changes tighten eligibility for key assistance programs, many households are feeling increased pressure on their budgets and finding it harder to meet their basic needs.
According to Capital One Shopping, U.S. online grocery sales increased 104% during the pandemic and are projected to grow 12.3% annually through 2029.
In response, many food and beverage companies have begun consolidating their operations, resulting in the closure of fulfillment centers and manufacturing plants across the country. Grocery stores have also followed suit by shutting down locations, leaving many communities with even fewer options for affordable food and household goods.
Despite the current uncertain climate, a major company is defying the concerning trend by saving a shuttered facility and restoring hundreds of jobs.
AriZona Beverages rescues a shuttered facility and saves hundreds of jobs
Harry Davis & Company, an asset solutions firm, confirmed that AriZona Beverages' subsidiary, U.S. Beverage Packers West LLC, has acquired a beverage packing facility and its equipment in Anaheim, California, from Manna Beverages for an undisclosed amount.
AriZona Beverages, founded in 1992 and best known for its popular canned iced teas, has since evolved into a major food and beverage manufacturer with a diverse portfolio that spans energy drinks, cold brew coffee, cocktails, juices, and snacks.
The acquisition follows Manna Beverages' closure of its facilities in Anaheim, Chino, and Sacramento in October 2025, resulting in the elimination of more than 600 jobs, according to CBS. AriZona's purchase will enable the Anaheim plant to reestablish production and restore hundreds of jobs for local workers.
"As with the Sacramento facility, our team quickly recognized that the Anaheim operation held exceptional strategic value for the beverage industry," said HDC CEO Lenny Davis in a press release. "Manna's exit opened a meaningful market opportunity, and the facility's fully integrated West Coast manufacturing and distribution platform drew immediate interest.
Manna Beverages is a supply chain company with a network of facilities that manufacture ready-to-drink products.AriZona Beverages' subsidiary, U.S. Beverage Packers West LLC, acquires a beverage packaging facility and its equipment in Anaheim, California, from Manna Beverages.Shutterstock
Food and beverage rivals face industry-wide struggles
While AriZona Beverages' acquisition will revive operations and bring jobs back to Anaheim, many competitors continue to cut costs amid weakening demand and rising expenses due to inflation.
According to the U.S. Bureau of Labor Statistics' Employment Situation update, 911,000 fewer jobs than expected were added in the 12 months through March 2025, signaling a clear economic slowdown.
In August, only 22,000 new non-farm payrolls were recorded, and the unemployment rate rose to 4.3%, the highest level in nearly four years.
"While the pace of layoffs has picked up somewhat, the hiring rate remains quite low. It is increasingly difficult for those laid off, and for new entrants into the job market, to find a position," said The Mortgage Bankers Association Chief Economist Mike Fratantoni in a statement.
More Closures:
Kroger announces unexpected closures ahead of holiday season 100-year-old grocery chain’s stores acquired by rival after closures 109-year-old grocery chain makes major cuts ahead of holiday season
Research from Harvard Business School notes that relying on layoffs to mitigate temporary economic shifts is often unsuccessful and has hidden costs that make companies less profitable, innovative, and productive over time.
"While layoffs may provide immediate financial relief, they often incur significant long-term costs that can undermine the very stability and performance they aim to protect," said Headhunter & Talent Strategist Bryan Blair.
Other facility closures across the industry
Kroger (KR): Closing 10 fulfillment centers by the end of 2026. General Mills (GIS): Shuttering three manufacturing plants in Missouri by the end of fiscal 2028. PepsiCo (PEP):
Closed two Frito-Lay manufacturing facilities in Orlando, affecting 500 employees. Partly closed its Detroit manufacturing plant, eliminating 83 jobs. Shuttered two Frito-Lay facilities in New York and California, impacting nearly 767 workers. Del Monte Foods: Closed multiple processing plants before filing for Chapter 11 bankruptcy in July 2025. Post Holdings: Planning to close cereal manufacturing facilities in Nevada and Ontario by the end of 2025, affecting around 300 employees.
Related: 98-year-old beer store chain has closed nearly 100 locations so far
This story was originally published by TheStreet on Dec 6, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
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| 06.12.25 17:15:00 |
2 Artificial Intelligence Stocks That Can Have Their Nvidia Moment in 2026 |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
CoreWeave's AI-ready cloud platforms have benefited from unprecedented demand growth. AMD's improving ability to compete with Nvidia could spark a massive rally in the stock. 10 stocks we like better than CoreWeave ›
Despite concerns over an artificial intelligence (AI) bubble, investors continue to bid AI stocks higher. Of those stocks, Nvidia remains one of the more notable winners, having risen nearly 1,500% from its 2022 low.
Still, succeeding in investing means looking forward, and ideally finding the stocks that will have the next Nvidia moment. While none of us can reliably predict such events beforehand, these AI stocks stand a strong chance of achieving such a milestone in 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
CoreWeave
CoreWeave (NASDAQ: CRWV) stock has only traded since March and has already experienced a massive run-up before dropping nearly 60% from that high.
Nonetheless, CoreWeave stands out in the cloud computing market by offering cloud infrastructure products specifically designed to handle AI workloads. This helps it stand out over legacy cloud platforms such as Amazon Web Services (AWS) or Microsoft's Azure cloud.
Moreover, the aforementioned stock volatility may remind investors of Nvidia. Despite Nvidia's gains, it has also become notable for massive drawdowns.
This may be the path CoreWeave stock is following. However, Grand View Research forecasts the AI market will grow at a compound annual growth rate (CAGR) of 32% through 2033. If this forecast proves close to accurate, it bodes well for CoreWeave's future as an AI cloud provider.
Recent growth reflects that interest. In the third quarter of 2025, revenue of nearly $1.4 billion rose 134% compared to the same period in 2024.
Admittedly, the cost of meeting this rapidly growing demand does take a toll on its financials. Net losses for Q3 were $110 million, far less than the year-ago quarterly loss of $389 million.
However, the drawdown has taken its price-to-sales (P/S) ratio to just over 7, a level comparable to just before the recent surge in the stock price.
Additionally, the 136% revenue increase anticipated for 2026 closely approximates the Q3 2025 growth rate. That, along with its $1.9 billion in liquidity, may mean it can sustain its current financial pace long enough to turn profitable, securing its place in the AI cloud and a bright future for shareholders.
AMD
Since the tech industry became aware of the power of Nvidia's AI accelerators, Advanced Micro Devices (NASDAQ: AMD) has worked to catch up in this industry. Due to its advancements and Nvidia's inability to fully meet demand, AMD has found customers for its MI350 accelerators.
Investors looking for an Nvidia moment saw signs of hope on AMD's financial analyst day, when the company projected a 35% revenue CAGR for the next three to five years, including annual increases of more than 60% for its data center business.
Moreover, AMD expects to release its MI450 accelerator in the second half of next year. Many analysts believe this chip can compete effectively with Nvidia's upcoming Vera Rubin accelerator, which would probably make AMD a larger player in this fast-growing business.
Investors will also like that overall growth has already reached that milestone. In Q3 2025, revenue grew 36% to more than $9.2 billion. About 47% came from the data center segment, and if the MI450 lives up to expectations, the Nvidia moment could be at hand. It could also accelerate over the next few years if the data center segment becomes the dominant revenue source, as it has with Nvidia.
Additionally, profits continue to grow faster than revenue. The over $1.2 billion in net income for Q3 is up 61% from year-ago levels.
Amid that news, AMD stock has been volatile since its financial analyst day, though it's still up by nearly 60% over the last year.
Also, its P/E ratio is 106. While that may appear high, the rapidly growing profits should reduce the earnings multiple, as its forward P/E ratio of 54 indicates.
Ultimately, AMD should sustain or increase the pace of revenue growth for the foreseeable future if its projections hold. That factor alone should make AMD stock worth buying now and owning for a long time to come.
Should you invest $1,000 in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
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Will Healy has positions in Advanced Micro Devices and CoreWeave. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 17:00:01 |
Comparing Two of the Top Buy-and-Hold ETFs for Retail Investors: QQQ vs. VOO |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
VOO charges a much lower expense ratio and offers a higher dividend yield than QQQ QQQ has outperformed VOO over the past year and five years but with deeper historical drawdowns VOO spreads risk across more sectors and holdings, while QQQ leans heavily on technology stocksThese 10 stocks could mint the next wave of millionaires ›
The Invesco QQQ Trust, Series 1 (QQQ) stands out for its tech-heavy focus and recent performance, while the Vanguard S&P 500 ETF (VOO) offers broader diversification, lower fees, and a higher yield.
Both QQQ and VOO are among the most popular exchange-traded funds in the U.S., but they serve different investment priorities. QQQ tracks the NASDAQ-100 Index and emphasizes large-cap technology, while VOO tracks the S&P 500 Index, representing the broader U.S. stock market. Here’s how they compare on cost, returns, risk, and what’s inside.
Snapshot (cost & size) MetricQQQVOOIssuerInvescoVanguardExpense ratio0.20%0.03%1-yr return (as of 2025-11-28)21.5%13.5%Dividend yield0.5%1.1%Beta1.101.00AUM$403.0 billion$1.5 trillion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VOO looks more affordable with its 0.03% expense ratio, undercutting QQQ’s 0.20% fee, and also stands out for a higher dividend yield, which could appeal to investors seeking income alongside growth.
Performance & Risk Comparison MetricQQQVOOMax drawdown (5 y)-35.12%-24.52%Growth of $1,000 over 5 years$2,067$1,889
What's Inside
VOO tracks the S&P 500 Index, holding 505 companies and offering exposure across sectors: 36% in technology, 13% in financial services, and 11% in consumer cyclicals. Its top positions include NVIDIA(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), each representing less than 0.1% of the fund. With over 15 years in the market, VOO may appeal to investors seeking broad, low-cost coverage of the U.S. large-cap universe.
In contrast, QQQ provides a more concentrated bet on large-cap growth, with 54% in technology, 17% in communication services, and 13% in consumer cyclicals. Its largest holdings—NVIDIA, Apple, and Microsoft—carry slightly higher individual weights than in VOO. QQQ’s narrower focus means greater sensitivity to tech sector swings, while VOO’s breadth spreads risk more widely.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
Simply put, these are two of my favorite ETFs. The Invesco QQQ Trust, Series 1 (QQQ) and the Vanguard S&P 500 ETF (VOO) are both compelling investment options, but let's break down what makes each one stand out.
To start, let's focus on one key difference: Each fund's expense ratio. The QQQ has an expense ratio of 0.20%, which is reasonable and below the average ETF expense ratio of around 0.45%. However, the VOO offers a rock-bottom expense ratio of 0.03%. That's about as low of an expense ratio as you'll ever see, and it gives the VOO the edge in this key category.
Second, let's examine performance and composition. The QQQ is more heavily weighted to megacap tech stocks. That has its benefits and drawbacks. In the long term, its concentration in technology stocks has powered the QQQ's excellent performance history. The QQQ boasts a 10-year compound annual growth rate (CAGR) of 19.2% -- easily besting the VOO's CAGR of 14.4%. Yet, on the other side of the ledger, QQQ's heavy concentration of big tech stocks makes it more volatile during market corrections and bear markets. The QQQ's max five-year drawdown of -35% is significantly steeper than the VOO's -24%.
In sum, both of these ETFs are excellent choices for just about any investment portfolio. Perhaps the only significant downside to these ETFs are their meager dividend yields (1.1% for VOO and 0.5% for QQQ), which may cause income-oriented investors to look elsewhere. Otherwise, these ETFs' broad diversification, low expense ratios, and excellent long-term performance history make them ETFs that every investor should know.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000: The increase in value of a $1,000 investment over a given time, including price changes and dividends.
Large-cap: Companies with a large market capitalization, generally considered stable and established.
Sector: A group of companies that operate in the same area of the economy, such as technology or financial services.
Index: A statistical measure representing a group of stocks, used to track market performance (e.g., S&P 500, NASDAQ-100).
Diversification: Spreading investments across various assets or sectors to reduce risk.
Drawdown: A decline in investment value from its peak to its lowest point before recovering.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Invesco QQQ Trust and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
| 06.12.25 17:00:01 |
Comparing Two of the Top Buy-and-Hold ETFs for Retail Investors: QQQ vs. VOO |
|
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
VOO charges a much lower expense ratio and offers a higher dividend yield than QQQ QQQ has outperformed VOO over the past year and five years but with deeper historical drawdowns VOO spreads risk across more sectors and holdings, while QQQ leans heavily on technology stocksThese 10 stocks could mint the next wave of millionaires ›
The Invesco QQQ Trust, Series 1 (QQQ) stands out for its tech-heavy focus and recent performance, while the Vanguard S&P 500 ETF (VOO) offers broader diversification, lower fees, and a higher yield.
Both QQQ and VOO are among the most popular exchange-traded funds in the U.S., but they serve different investment priorities. QQQ tracks the NASDAQ-100 Index and emphasizes large-cap technology, while VOO tracks the S&P 500 Index, representing the broader U.S. stock market. Here’s how they compare on cost, returns, risk, and what’s inside.
Snapshot (cost & size) MetricQQQVOOIssuerInvescoVanguardExpense ratio0.20%0.03%1-yr return (as of 2025-11-28)21.5%13.5%Dividend yield0.5%1.1%Beta1.101.00AUM$403.0 billion$1.5 trillion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VOO looks more affordable with its 0.03% expense ratio, undercutting QQQ’s 0.20% fee, and also stands out for a higher dividend yield, which could appeal to investors seeking income alongside growth.
Performance & Risk Comparison MetricQQQVOOMax drawdown (5 y)-35.12%-24.52%Growth of $1,000 over 5 years$2,067$1,889
What's Inside
VOO tracks the S&P 500 Index, holding 505 companies and offering exposure across sectors: 36% in technology, 13% in financial services, and 11% in consumer cyclicals. Its top positions include NVIDIA(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), each representing less than 0.1% of the fund. With over 15 years in the market, VOO may appeal to investors seeking broad, low-cost coverage of the U.S. large-cap universe.
In contrast, QQQ provides a more concentrated bet on large-cap growth, with 54% in technology, 17% in communication services, and 13% in consumer cyclicals. Its largest holdings—NVIDIA, Apple, and Microsoft—carry slightly higher individual weights than in VOO. QQQ’s narrower focus means greater sensitivity to tech sector swings, while VOO’s breadth spreads risk more widely.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
Simply put, these are two of my favorite ETFs. The Invesco QQQ Trust, Series 1 (QQQ) and the Vanguard S&P 500 ETF (VOO) are both compelling investment options, but let's break down what makes each one stand out.
To start, let's focus on one key difference: Each fund's expense ratio. The QQQ has an expense ratio of 0.20%, which is reasonable and below the average ETF expense ratio of around 0.45%. However, the VOO offers a rock-bottom expense ratio of 0.03%. That's about as low of an expense ratio as you'll ever see, and it gives the VOO the edge in this key category.
Second, let's examine performance and composition. The QQQ is more heavily weighted to megacap tech stocks. That has its benefits and drawbacks. In the long term, its concentration in technology stocks has powered the QQQ's excellent performance history. The QQQ boasts a 10-year compound annual growth rate (CAGR) of 19.2% -- easily besting the VOO's CAGR of 14.4%. Yet, on the other side of the ledger, QQQ's heavy concentration of big tech stocks makes it more volatile during market corrections and bear markets. The QQQ's max five-year drawdown of -35% is significantly steeper than the VOO's -24%.
In sum, both of these ETFs are excellent choices for just about any investment portfolio. Perhaps the only significant downside to these ETFs are their meager dividend yields (1.1% for VOO and 0.5% for QQQ), which may cause income-oriented investors to look elsewhere. Otherwise, these ETFs' broad diversification, low expense ratios, and excellent long-term performance history make them ETFs that every investor should know.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000: The increase in value of a $1,000 investment over a given time, including price changes and dividends.
Large-cap: Companies with a large market capitalization, generally considered stable and established.
Sector: A group of companies that operate in the same area of the economy, such as technology or financial services.
Index: A statistical measure representing a group of stocks, used to track market performance (e.g., S&P 500, NASDAQ-100).
Diversification: Spreading investments across various assets or sectors to reduce risk.
Drawdown: A decline in investment value from its peak to its lowest point before recovering.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Invesco QQQ Trust and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
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